KENDALL COUNTY FOOD PANTRY, INC.

Transcription

1 KENDALL COUNTY FOOD PANTRY, INC. MODIFIED CASH BASIS FINANCIAL STATEMENTS with INDEPENDENT AUDITORS' REPORT for the year ended December 31, 2010 Weber & Associates CPAs, LLC Certified Public Accountants

2 Index to Financial Statements Independent Auditors' Report 1 Basic Financial Statements Statement of Assets, Liabilities and Net Assets - Modified Cash Basis 2 Statement of Changes in Net Assets - Modified Cash Basis 3 Statement of Functional Expenses - Modified Cash Basis 4 Notes to Financial Statements 5-7 Page

3 Veger & Associates CPAs, Certified Public Accountants Thomas A. 'Weber Michael Coakley Suite.1B, 314 N. Lake St..Aurora, IL Fax: To the Board of Directors Kendall County Food Pantry, Inc. Yorkville, Illinois INDEPENDENT AUDITORS' REPORT We have audited the accompanying statement of assets, liabilities and net assets - modified cash basis, of Kendall County Food Pantry, Inc. (a not-for-profit organization) as of December 31, 2010, and the related statements of changes in net assets and functional expenses - modified cash basis, for the year then ended. These financial statements are the responsibility of the Organization's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As described in Note 2, these financial statements were prepared on the modified cash basis of accounting, which is a comprehensive basis of accounting other than generally accepted accounting principles. In our opinion, the financial statements referred to above present fairly, in all material respects, the assets, liabilities and net assets - modified cash basis of Kendall County Food Pantry, Inc. as of December 31, 2010, and its changes in net assets for the year then ended, on the basis of accounting described in Note October 20, 2011

4 Statement of Assets, Liabilities and Net Assets - Modified Cash Basis as of December 31, 2010 Assets Current assets: Cash $ 170,142 Certificates of deposit 94,423 Deposit on utilities 844 Due from PayPal ,400 Fixed assets: Furniture and equipment 24,323 Warehouse vehicles 6,525 Pantry vehicles 26,256 Freezers and coolers 54,699 Leasehold improvements 7, ,553 Less accumulated depreciation (20,610) 98,943 Total assets $ 365,343 Net assets Unrestricted $ 323,317 Temporarily restricted 42,026 Total net assets $ 365,343 See accompanying notes to financial statements. 2

5 Statement of Changes in Net Assets - Modified Cash Basis for the year ended December 31, 2010 Unrestricted Temporarily Restricted Total Revenues and other support: Contributions, gifts and grants $ 200,493 $ 59,649 $ 260,142 In-kind donations 117, ,000 Interest 2,374 2,374 Net assets released from restrictions 17,699 (17,699) Total revenues and other support 337,566 41, ,516 Expenses and other deductions: Program services 307, ,223 Management and general 18,025 18,025 Fundraising 2,398 2,398 Total expenses 327, ,646 Change in net assets 9,920 41,950 51,870 Net assets, beginning of year 313, ,473 Net assets, end of year $ 323,317 $ 42,026 $ 365,343 OP See accompanying notes to financial statements. 3

6 Statement of Functional Expenses - Modified Cash Basis for the year ended December 31, 2010 Program Services Management and General Fundraising Total Food for distribution $ 86,219 $ - $ $ 86,219 Building rent 108, ,000 Supplies 20,304 20,304 Warehouse 16,288 16,288 Facilities and equipment 3,810 3,810 Equipment rental and maintenance 3,761 3,761 Rent, parking and utilities 21,290 21,290 Telephone 3, ,768 Membership and dues 2,866 2,866 Postage 1, ,307 Printing and copying Auto 10,686 10,686 Accounting fees 8,175 8,175 Contract services 1,148 1,148 Insurance 4,301 4,301 Business expenses 3,561 3,561 Business registration fees Office expenses 10,151 2,031 12,182 PayPal fees Gift cards 3,160 3,160 Fundraising 2,398 2,398 Depreciation 9,513 1,903-11,416 Miscellaneous 1, ,036 Total expenses $ 307,223 $ 18,025 $ 2,398 $ 327,646 See accompanying notes to financial statements. 4

7 Notes to Financial Statements 1. ORGANIZATION AND PURPOSE The Kendall County Food Pantry, Inc. (Food Pantry) is a not-for-profit organization that was established in 1987 in response to a growing need in Kendall County, Illinois. The Food Pantry collects and distributes food, clothing, and related necessities to those in need, in crisis or in emergency situations, allowing them to receive donated assistance while regaining self sustainable status. The Food Pantry is supported primarily through donor contributions, grants from local organizations and state governmental units, and the Federal Government's Emergency Food and Shelter Program. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting The records of the Food Pantry are maintained on the modified cash basis of accounting, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. The modified cash basis of accounting differs from accounting principles generally accepted in the United States of America primarily because the Food Pantry has not recognized receivables, prepayments and payables. The financial statements are presented on the basis of unrestricted, iemporarily restricted, and permanently restricted net assets. Contributions Contributions received are recorded as unrestricted, temporarily restricted or permanently restricted support depending on the existence or nature of any donor restrictions. Contributions that are restricted by the donor are reported as increases in unrestricted net assets if the restrictions expire (that is, when a stipulated time restriction ends or purpose of restriction is accomplished) in the reporting period in which the revenue is recognized. Donated Facilities The Food Pantry receives the free use of office and warehouse space. Contributions and expenses related to the donated office space amounting to $108,000 have been reflected in the accompanying statement of changes in net assets - modified cash basis. Contributed Services Contributed services are recognized in the fmancial statements at fair value if the services received (a) create or enhance long-lived assets or (b) require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation. The Food Pantry is operated entirely by volunteers. Many individuals volunteer their time and perform a variety of tasks that assist the Food Pantry with daily operations. ThC volunteer hours have not been recorded in the statement of activities. 5

8 Notes to Financial Statements, continued 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued Fixed assets Fixed assets are stated at cost if purchased or at fair value on the date received if donated. The Food Pantry generally capitalizes all assets which cost more than $500 and have a useful life of more than one year. Property and equipment is depreciated over the estimated useful lives of the assets, using the straight-line method. Depreciation expense was $11,416 for the year ended December 31, Expense Allocation The costs of providing programs have been summarized on a functional basis in the statement of changes in net assets - modified cash basis and the statement of functional expenses - modified cash basis. Accordingly, certain costs have been allocated among programs and supporting services. This allocation was based primarily on the square footage of the office and warehouse spaces relative the to the total square footage of the building. Use of Estimates The preparation of financial statements in conformity with the modified cash basis of accounting requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 3. RESTRICTED NET ASSETS Temporarily restricted net assets are available for the following purposes at December 31, 2010: Website development 23,000 Refrigeration equipment 19,000 Department of Human Services Front Door Program 26 42,026 During the year ended December 31, 2010, net assets totaling $17,699 were released from donor restrictions by incurring expenses stipulated by donor imposed restrictions. 4. TAX STATUS The Food Pantry has received a determination letter from the Internal Revenue Service indicating that it is exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code. 6

9 Notes to Financial Statements, continued 5. SUBSEQUENT EVENTS Management has evaluated subsequent events through October 20, 2011, the date the financial statements were available to be issued. 7